Gold Bullion Provides Update on Progress at Granada Mine
VANCOUVER, July 9, 2013 /PRNewswire/ – Gold Bullion Development Corp. (TSXV:
GBB) (OTCPINK: GBBFF) (the “Company” or “Gold Bullion”) is providing an
update on continuing activities at the Granada Gold Property in Quebec.
The Company intends to provide an update on the progress at the Castle
Silver Mine in Ontario at a future date.
Despite challenging market conditions and materially lower precious
metal prices, the Company is progressing on multiple fronts at the
Granada Gold Property. The Company is revising both the rolling start
schedule and the processing tonnage based on recently-received
documents from Company consultants and from the potential processing
The Company has completed the recently announced 450-metre trenching
program that was undertaken to further evaluate the near-surface
mineralized zones of the potential open pit at the Granada Gold Mine.
Assays from channel samples taken from the trenched areas varied from
22.42 grams per tonne Au over 1.04 metres to 0.01 grams per tonne Au
over 0.82 metres. The higher grades were from samples in the eastern
section of the extended LONG Bars zone. Significant visible gold was
also encountered very near surface at a depth of 10 centimetres in the
western area of trenching.
The Company has completed the metallurgical test work at SGS-Lakefield
and is nearing completion of the test work at Gekko in Ballarat,
Australia for process flowsheet development. The results received thus
far indicate a 480 tonne per day Python 200 – 20tph Environomic Processing plant is optimal for current requirements. The current flowsheet proposal
indicates gravity, then flotation, followed by cyanidation of the
flotation concentrate as the optimal configuration to produce a gold
bar. The Python plant is designed to be installed underground which can
reduce operational costs by 15-25 percent. Initially it would be
installed on the surface during the rolling start evaluation of the
mineralized extended LONG Bars zone at the Granada site. The
underground installation would follow in due course.
The Company is making steady progress on its environmental studies and
tests. In addition to the base line study, the Company conducted packer
tests for the hydrological study – an additional requirement for the
Certificate of Authorization (CofA). The packer test is meant to test
permeability of the rock by sections using boreholes. In selected holes
and at various depths (based on geological description and fracturing)
two balloons were lowered to specified depths and were then inflated.
Water under pressure was then injected into the now-isolated zone to
measure its permeability with resulting data used for the
hydrogeological modelling of the open pit, for dewatering and for
impact of potential water draw down on neighbouring water wells.
A request for a CofA will be prepared by the Company’s environmental
consultants with November 2013 as the targeted time frame for
submission to the Ministry of the Environment. The Ministry will then
require between 75 and 180 days to analyse the request and either issue
or deny the CofA.
Back on September 10, 2008, the Company received 40 statements of
offence pursuant to the Environment Quality Act (Québec) for allegedly failing to comply with certain conditions of its
permit for a current project (at that time) on the Company’s Granada
property and for non-respect of the Act. During the evaluation of the
Granada Property in 2006 and 2007 the Company undertook the operation
of a third party mill on the Granada Property. The Company encountered
operational problems with the mill at that time. The statements of
offence relate to the period from October 6, 2006 to November 14, 2007.
On March 15, 2013 the Company settled the case by pleading guilty to 18
of the statements of offence with the remaining 22 statements of
offence withdrawn by the prosecution. The Company agreed to pay the
minimum fine on each of the 18 statements and fees at the rate
established by regulation of the Minister pursuant to section 116.1.1
of the Act relating to the costs of sampling, analysis, inspection and
investigation for the penal proceedings instituted for the purposes of
The Company proactively requested that the CofA be revoked and has since
had the third party mill removed from the Granada Property.
The Company is now in its third year of the waste pile desulfurization
evaluation process. Last year, 70,000 tonnes were sold to a local
contractor for evaluation purposes with all proceeds from the waste
rock going to a local charity. Waste rock material has been used to
build on-site roads to drill targets, for the upgrade of the municipal
road to the mine site and for the improvement to recreational trails on
the Granada Property.
The Company has also undertaken work to stabilize the historic tailings
from the thirties, (now owned by the Province of Quebec), and has
developed a process to stabilize the tailings.
Gold Bullion has also just received the updated project schedule and the
Preliminary Feasibility Study (PFS) is now targeted for delivery by SGS
in October 2013. The PFS was undertaken with the objective of lowering
the capital costs of the project as well as the cost per ounce of gold
by increasing the grade of the gold to be processed. The Company
anticipated a market correction in the price of gold prior to the
completion of the PEA (February 4, 2013 effective December 21, 2012)
and has therefore taken steps to manage the risk of market uncertainty.
The Company has also taken into consideration the coming changes to
environmental requirements and has begun a program of repurposing the
waste rock for non-mining uses with the bulk to be used as a rock
sculpture on the Granada mining property. The tailings, too, are being
considered for repurposing and have been separated into low-sulfide and
high-sulfide tailings for reuse and disposal. The Company’s long term
objective is to build and operate a mine that can adapt to market
conditions, undertake repurposing of waste products and have a minimal
environmental foot print while being out-of-sight and sound in its
Upon receiving the CofA, the Company will be able to start project
construction – subject to financing and budgeting – in the first half
Claude Duplessis, P. Eng., is acting as the qualified person (QP) for
Gold Bullion Development Corp. in compliance with National Instrument
43-101 and has reviewed the technical contents of this press release.
About Gold Bullion Development Corp.
Gold Bullion Development Corp. is a TSX Venture-listed junior natural
resource company focusing on the exploration and development of its
Granada Property near Rouyn-Noranda, Québec. Additional information on
the Company’s Granada gold property is available by visiting the
website at www.GoldBullionDevelopmentCorp.com and on SEDAR.com.
“Frank J. Basa”
Frank J. Basa, P.Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but
not limited to comments regarding the timing and content of upcoming
work programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve inherent
risks and uncertainties. Actual results may differ materially from
those currently anticipated in such statements.
SOURCE Gold Bullion Development Corp.